Four companies run about 85 percent of American beef processing. One of them is headquartered in Brazil. The rancher takes the price he is handed and the family pays what it’s told, while the margin disappears in the middle.
For thirty years Washington let beef processing collapse into four firms. When a rancher has a handful of buyers for his calves, he has no leverage. When a shopper finds the same few processors behind nearly every package on the shelf, neither does she.
The American cattle herd has fallen to roughly 86 million head, the lowest since 1951. More than 150,000 ranching operations have been lost since 2017. Drought did some of it, costs did some of it, and consolidation pushed independent operators off the land for good.
Conservatives believe in competition, and four firms running an essential industry is the opposite of it. This is the cronyism we’re supposed to oppose, dressed up as a market. Put more buyers in the ring for a rancher’s calves and the price finds its own level. That’s the market doing its job.